Why Should The Uk Leave The Eu Case Study

Would it be in the United Kingdom’s economic interest to leave the European Union? The United Kingdom (UK) has been a member of the European Union (EU) for almost four decades and has thrived financially since joining. However, following the recent financial crisis, concerns about Britain’s ongoing membership of the EU have increased dramatically, notably voiced by the head of the Confederation of British Industries (CBI), the UK’s largest business lobby. A key promise in the Conservative Party Manifesto, a party that has been long divided over membership of the EU, was to hold a referendum on the UK’s continued membership. David Cameron, the leader of the Conservative Party and the current UK Prime Minister, has pledged to hold this referendum …show more content…
The UK initially refused a request to join the European Economic Community (EEC), a body founded in 1957 after the Second World War (WWII) with the aim of improving the relationship between European countries. UK ministers at the time argued that the UK was a global power with influence and reach well beyond the confines of Europe. The economic difficulties of the early 1960s however resulted in a change of heart leading the UK to apply to join in 1963. It was however vetoed twice by the French President as he believed that the UK was opposed to European integration. The UK finally joined in 1973, after a referendum, held under the watch of the Conservative Prime Minister Edward Heath. Notably, all major political parties were in favour of the UK joining the EEC. Concerns about the perceived lack of economic benefits to the UK led to a growing division between mainland Europe and the UK during the 1980’s. These came to a head when the European Union (EU) became more federal, uniting under a single currency, which the UK opted out of. This move led to serious internal divisions within the Conservative Party eventually leading to the downfall of the then Prime Minister Margaret …show more content…
We are now heading to a situation when severing these ties is a very real possibility. Leaving the EU is however a very dangerous prospect due to the potential for this to impact adversely on trade with the increasingly powerful EU economic block. It is noteworthy that 57% of all of the UK’s exports is with the EU. One of the major reasons for this is the free trade agreement between EU member countries, whereby EU member states reduce tariffs in order to encourage trade within the EU. As a recent report by the Center for Economic Performance concluded, the UK exiting the EU would result in substantially lower trade due to higher trade